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Mr. Lewis Goes to Sacramento
I went to Sacramento yesterday. The State Assembly’s Revenue and Taxation Committee was scheduled to discuss and vote on AB178. I went to testify along with Overstock, TechAmerica and Commission Junction (our own Kerri Pollard).
Both Kerri and I had a feeling that we’d get there only to find out that the bill was not being heard so we both booked our flights at the last minute when it was clear that we were going to be testifying.
As my cab from the airport pulled up to the State Capitol, I got an e-mail informing me that the bill was removed from the day’s schedule. It was being reclassified as a two year bill. From what I understand, the author can resurrect the bill in January. Of course, the provisions of the bill can also be put into other bills at any time so while the bill did not make it through committee, the issue is not dead (and won’t be until -more if than when- Congress passes the Streamlined Sales Tax).
The Rev & Tax Committee discussed two other bills yesterday that relate to the collection of sales tax. What I heard was that these bills have a better chance of passage, easier enforcement and would generate more revenue for the State.
While AB178 is on hold and we (in California) can all sleep a little better, we can expect it to come up again. Other states are looking to pass similar legislation as well.
The unintended consequence of AB178 was that small businesses would be hurt. I do not think that the bill’s authors knew that thousands of small businesses would suffer nor did they intend to do so. Small business has always been the backbone of our country and will be the engine that pulls us out of the current recession. I hope to see the state legislature taking action to help our businesses. I know that had AB178 been enacted before I started my business, I most likely would not have been able to begin. I am not the type of person who looks for barriers to entry so I do not support legislation that will bar others from starting businesses, especially when anyone in 48 other states and the District of Columbia (or any other country) can have unrestricted relationships with the same stores.
I’d like to thank some of the people who helped lobby against AB178 (I know that I will miss some folks). There was a broad coalition that included Yahoo, Google, eBay, ValueClick, Cal Chamber, CalTax and many others.
The most encouraging thing to come from this was the grassroots efforts from our community. It is amazing how much we got done so quickly given that we have no formal organizations. It looks like the PMA was started at the right time to help California. Rebecca Madigan helped get things organized. Karen Garcia, Beth Kirsch, Lisa Picarille, Brad Waller, Loren Bendele, Trish Fawver, Brook Schaaf all helped arranging meeting in Sacramento and with our local newspapers. Over a dozen people took time out to go to Sacramento to talk to assembly members, state senators and their staffs.
I will not be able to show up to any family functions if I don’t thank my brother Paul Lewis. While he has nothing to do with performance marketing (he is an amazing landscape architect), he managed to get me several meetings with folks we really needed to meet with with. Thank you, Paul!
Kudos to Dave who, along with Loren Bendele, was the only person to fly up twice from Southern California.
I think Dave makes a great point that often gets overlooked: “I know that had AB178 been enacted before I started my business, I most likely would not have been able to begin.”
The future will bring many affiliate businesses with models that have not even been thought of yet. If this type of legislation is passed, it will severely harm not only existing businesses, but prevent new ones from getting started.
[...] Mr. Lewis Goes to Sacramento – David Lewis [...]